Recognising the potential for advancement in the local economy, which is being driven by a new impetus in the form of petroleum, a Trinidad and Tobago company, United Independent Petroleum Marketing Company Limited (Unipet), plans to construct a US$4.9 million fuel import, storage and distribution facility at Land of Canaan, on the East Bank of Demerara (EBD).

The company is a duly registered external company in Guyana with its Head Office in Trinidad and Tobago. The core business is in the downstream liquid petroleum industry, complementary energy services and convenience services since 1997. Unipet is a limited liability company that is privately-owned and governed by a Board of Directors.

The company’s plan, as outlined in a project summary which was submitted to the Environmental Protection Agency (EPA), is to build a multi-purpose fuel facility on a plot of land which stretches over 1.112 hectares of land.

As it is now, the area is an open and largely undeveloped field with a few buildings and ancillary structures within its boundary.
The overarching objective of the company is to develop the area with a new bulk fuel storage facility with gantry loading, office buildings and other ancillary infrastructure, and a gas station and convenience store.

Based on the project summary, Unipet plans to complete construction of the multi-purpose facility within two years after the initiation of works.
During the construction phase, the company intends to hire close to 70 persons, while some 36 people will be employed when the facility is fully operational.

This project will add to flurry of development across Guyana, especially as it relates to progress within the manufacturing sector.
It was reported that progress within Guyana’s manufacturing sector remained positive throughout the first half of 2021, recording an increase in output of 13.1 per cent, according to the Bank of Guyana.

SIGNIFICANT IMPROVEMENT
This performance, based on statistics from the Central Bank’s mid-year report, is a significant improvement, considering that the sector contracted by 0.2 per cent at the end of the corresponding period last year.

“This out-turn reflected a 23.1 per cent rise in output of ‘other’ manufacturing, and 3.1 per cent increase in rice manufacturing, which together offset the decline of 17.2 per cent in the value-added of sugar.

“Other manufacturing industries registered increases in the categories of alcoholic beverages by 48.0 per cent; paints by 34.3 per cent; Malta by 20.3 per cent; liquid pharmaceuticals by 10.4 per cent; non-alcoholic beverages by 9.4 per cent; and electricity by 3.8 per cent, as economic activity thrived due to the reopening of the economy,” the bank related.

While there is not always a direct relationship between an increase in output and an increase in exports, statistics from the Bank of Guyana show that total earnings from all “other exports”, commonly referred to as non-traditional exports, amounted to US$102.4 million, 14.4 per cent more than the value recorded during the same period last year.

This improvement, according to the Central Bank, was primarily on account of higher receipts in the sub-categories of rum and other spirits, beverages, diamonds, re-exports and wood products by US$8.7 million, US$8.2 million, US$5.1 million, US$4.9 million, and US$0.1 million respectively.

When consolidated, total export receipts increased by 63.6 per cent, or US$786.9 million to over US$2 billion, compared to the US$1.2 billion earned during the corresponding period last year.

Owing to the performance in the first half of the year, the Bank of Guyana is optimistic that the high level of growth achieved will be sustained in the second half.

RAPID TRANSFORMATION
Earlier this year, Senior Finance Minister, Dr. Singh had said that Guyana would be one of the fastest growing economies in terms of real GDP, and would see rapid transformation in a number of sectors, especially since the government would make efforts to boost the non-oil economy as well.

“We’re anticipating a rapid expansion in the services sector, including transport and logistics, construction of infrastructure, including roads, bridges, office buildings in the private sector, etc, along with expansion in other services such as financial services, all of which will contribute to rapid expansion in real output,” Dr. Singh said. “So, you’re going to see Guyana being one of the fastest growing economies in real GDP terms, globally in the hemisphere, and certainly in the Caribbean…. A lot of the real GDP growth in the region will be driven by Guyana,” he added.

The favourable economic performance at the end of the first half of 2021 in the non-oil economy bodes well for the upcoming second half of 2021 and beyond.